Ratio of deficit-ridden households increases in Q2

Published : 2014-08-26 10:14
Updated : 2014-08-26 10:14

The proportion of households spending more than they take in inched up in the second quarter from a year earlier, government data showed Tuesday, suggesting that people are finding it harder to make ends meet amid slowing economic growth.

According to the data provided by Statistics Korea, the proportion of households whose consumption spending exceeded their disposable income stood at 23 percent during the April-June period, up 0.9 percentage point from a year earlier.

The increase is attributable to slower growth in disposable income.

"Affected by the protracted economic slowdown, disposable income growth among low and middle-income households failed to keep up with their consumption growth. This causes the ratio of households running deficits to increase," said Lim Hee-jung, a senior economist at the Hyundai Research Institute.

Household disposable income -- total income minus non-consumption spending -- grew 2.8 percent on-year to 3.38 million won ($3,313) during the second quarter. The growth rate was slower than the 5.1 percent gain in the first quarter.

During the same period, household consumption spending came to 2.48 million won per month in the second quarter, up 3.1 percent from a year earlier, according to the data. (Yonhap)